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click to go back to news topics CAB Says Help for homeowners A cross–government package of measures has been announced to try and support the decline in the housing market. The measures include the following provisions:- • stamp duty land tax of 1 per cent will not apply to purchases of residential property of £175,000 or less. This is effective from 3 September running for twelve months, at which stage it might be adjusted back down to the previous level of £125,000 • income support for mortgage interest will be reformed by reducing the waiting period before payment from 39 weeks to 13 weeks for new working age claims. The capital limit for new working age claims will also be increased to £175,000. • Further measures which will apply in England include: • the introduction of a new shared equity scheme called HomeBuy Direct where buyers will be offered an equity loan of up to 30 per cent of the value of the property. The loan will be interest-free for five years and will be co-funded by the government and the housing developer • the establishment of a mortgage rescue scheme targeted specifically at families who can no longer afford repayments and who would be eligible for homelessness assistance • an advance of funding for social housing providers to build more homes over the next 18 months. Information about these measures is available on the Department for Communities and Local Government website at www.communities.gov.uk |